Avantha Power lenders ink Jhabua Plant deal with NTPC

Lenders to the Avantha Group’s 600 MW distressed Jhabua power plant have come to an agreement with the state-owned National Thermal Power Corporation (NTPC) to complete the sale of the asset, more than two years after the case was taken to bankruptcy courts.

Under the renegotiated agreement, lenders have agreed to take an equity stake in the company and share in the monthly operating profit or earnings before interest tax depreciation and amortisation (Ebitda). That has allowed some of the payments to be delayed, three people familiar with the deal said.

“We have come to an agreement whereby NTPC will invest Rs 300 crore cash and will also get a Rs 600-crore equity stake. Banks have agreed to take the remaining 50% equity stake for Rs 600 crore which will give us future upside and another Rs 300 crore on deferred payments from the monthly Ebitda generation of the company, which is presently at Rs 25 crore per month,” said one of the persons cited above.

ET News
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